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Second Quarter and Half Year 2026 4 August 2026
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Forward looking statements and non-IFRS measures This document may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected revenue growth and trading profit margins, market trends and our product pipeline are forward-looking statements. Phrases such as "aim", "plan", "intend", "anticipate", "well-placed", "believe", "estimate", "expect", "target", "consider" and similar expressions are generally intended to identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. For Smith+Nephew, these factors include: economic and financial conditions in the markets we serve, especially those affecting healthcare providers, payers and customers; price levels for established and innovative medical devices; developments in medical technology; regulatory approvals, reimbursement decisions or other government actions; product defects or recalls or other problems with quality management systems or failure to comply with related regulations; litigation relating to patent or other claims; legal compliance risks and related investigative, remedial or enforcement actions; disruption to our supply chain or operations or those of our suppliers; competition for qualified personnel; strategic actions, including acquisitions and dispositions, our success in performing due diligence, valuing and integrating acquired businesses; disruption that may result from transactions or other changes we make in our business plans or organisation to adapt to market developments; relationships with healthcare professionals; reliance on information technology and cybersecurity; and numerous other matters that affect us or our markets, including those of a political, economic, business, competitive or reputational nature. Please refer to the documents that Smith+Nephew has filed with the U.S. Securities and Exchange Commission under the U.S. Securities Exchange Act of 1934, as amended, including Smith+Nephew's most recent annual report on Form 20-F, for a discussion of certain of these factors. Any forward-looking statement is based on information available to Smith+Nephew as of the date of the statement. All written or oral forward-looking statements attributable to Smith+Nephew are qualified by this caution. Smith+Nephew does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in Smith+Nephew's expectations. The terms ‘Group’ and ‘Smith+Nephew’ are used for convenience to refer to Smith & Nephew plc and its consolidated subsidiaries, unless the context requires otherwise. Certain items included in ‘trading results’ , such as trading profit, trading profit margin, trading attributable profit, tax rate on trading results (trading tax expressed as a percentage of trading profit before tax), Adjusted Earnings Per Ordinary Share (EPSA), trading cash flow, free cash flow, trading profit to trading cash conversion ratio, leverage ratio, and underlying revenue growth are non-IFRS financial measures. The non-IFRS financial measures in this announcement are explained and, where applicable, reconciled to the most directly comparable financial measure prepared in accordance with IFRS in our Second Quarter and Half Year 2026 Results announcement dated 4 August 2026. ◊ Trademark of Smith+Nephew. Certain marks registered in US Patent and Trademark Office.
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Summary H1 trading profit of $566m, +8.1% yoy , on track for full year guidance • Driven by step - up in forecast efficiency savings, with tariff refunds fully offsetting forecast tariff headwind • Excluding M&A, H1 trading profit growth was +9.0% yoy Q2 2026 Underlying revenue growth of +1.6% in Q2, lower than expected • Strength in Sports Medicine offset by softness in US Orthopaedics and Advanced Wound Bioactives • Continued strong double - digit growth or higher from CATALYSTEM ◊ , AETOS ◊ , Q - FIX ◊ , REGENETEN ◊ , CARTIHEAL ◊ AGILI - C ◊ , FASTSEAL ◊ and LEAF ◊ Reducing revenue outlook for the year, but maintaining guidance on all other metrics • Expect 5.0 - 5.5% revenue growth in H2 and c.4.0% revenue growth for the full year • Maintaining guidance for trading profit, free cash flow and ROIC after strong H1 • Impact of lower revenue growth to be offset by additional $50m in savings identified for 2026 3 Q2 2026
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Q2 2026 4 Q2 2026 revenue
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Q2 2026 summary revenue performance Growth by Business Unit* Growth by Region* Orthopaedics $614m Sports Med & ENT $527m AWM $456m Total revenue of $1,597m • Underlying revenue growth of +1.6%; reported 2.8% • Same number of trading days vs Q2 2025 • 120bps tailwind from FX on reported growth Q2 2026 5 * Growth rates are versus Q2 2025 on an underlying basis 10.6% 1.7% - 1.3% 1.6% Other Established Markets $489m Emerging Markets $292m US $816m Group $1,597m Group $1,597m - 1.0% - 2.1% 8.6% 1.6%
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Sports Medicine & ENT Strong growth in Joint Repair and AET; ENT impacted by China VBP as expected Q2 2026 6 Q2 sales factors • Sports Medicine Joint Repair +10.6%: • Continued strong growth from REGENETEN and Q - FIX KNOTLESS ◊ • All regions contributed to growth • AET +8.8% (+6.7% ex China): • Strong growth in FASTSEAL and Services • China VBP still expected to be implemented in H2 • ENT - 1.6% (+10.0% ex China): • Strong growth globally, excluding China, driven by both Nose and Throat • Inventory channel reductions in China ahead of VBP implementation Q2'25 Q2'26 SMJR AET ENT $479m $527m Revenue of $527m: +8.6% underlying*; +10.0% reported RISE: 2026 drivers • Drive further market penetration of REGENETEN • Capitalise on strength of shoulder portfolio • Launch TESSA ◊ , our first - in - industry spatial surgery arthroscopic platform - 1.6% +8.8% +10.6% * Growth rates are versus Q2 2025
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Advanced Wound Management Solid growth across AWC and AWD; AWB impacted by US reimbursement change [and tough prior year comp] Q2 2026 7 Q2 sales factors • Advanced Wound Care +3.7%: • Good growth led by US ALLEVYN ◊ and Emerging Markets • ALLEVYN COMPLETE CARE momentum building in US and Europe • Advanced Wound Bioactives - 12.7%: • SANTYL ◊ soft following strong prior quarter • Skin substitutes still declined, but showed sequential improvement • Advanced Wound Devices +3.8%: • Solid PICO ◊ growth given very strong prior year comparator • LEAF Patient Monitoring System continues to see good uptake Q2'25 Q2'26 AWC AWB AWD $459m $456m Revenue of $456m: - 2.1% underlying*; - 0.7% reported RISE: 2026 drivers • Take share with ALLEVYN COMPLETE CARE • Navigate CMS reimbursement change to skin substitutes • Access new settings and patient populations with products including PICO and LEAF +3.8% - 12.7% +3.7% * Growth rates are versus Q2 2025
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Orthopaedics Soft quarter in Knees and US hips with solid growth in Trauma & Extremities Q2 2026 8 Q2 sales factors • Global Knees and Hips - 4.3% and +0.5%: • US Hips - 1.5%; reflecting a delay in CATALYSTEM set deployments, and Knees - 7.2%; sequential improvement driven by strong uptake of LEGION ◊ MS • OUS Knees - 1.4%; prior year quarter benefitted from large Middle East tender and Hips +3.0%; strong performance in Japan • Trauma & Extremities +2.4%: • Good growth in EVOS ◊ plating system, Shoulder and IM Nails • Strength in Emerging Markets • Other Reconstruction +0.8 %, impacted by strong prior year comparator and contract mix; double digit growth in placements globally Q2'25 Q2'26 Knees Hips Other Recon** Trauma and Extremities $615m $614m Revenue of $614m: - 1.0% underlying*; - 0.2% reported RISE: 2026 drivers • Drive growth with CORI ◊ , supported by launch of Shoulder execution • Launch LANDMARK ◊ knee • Deliver operational efficiencies with Ortho 360 operational model +2.4% +0.8% +0.5% - 4.3% * Growth rates are versus Q2 2025 ** Other Recon includes robotics capital sales, joint navigation and bone cement
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Q2 2026 9 H1 2026 financials
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H1 revenue growth by Business Unit 10 2,961 (1) 72 (1) 67 3,097 H1 2025 Orthopaedics Sports Medicine & ENT AWM Translational FX impact H1 2026 Revenue ($m) 1,213 1,017 867 3,097 Reported growth 1.7% 10.2% 2.6% 2.3% 4.6% Underlying growth - 0.1% 7.7% - 0.1% 2.3% $m
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11 H1 202 6 $m H1 202 5 $m Reported growth Revenue 3,097 2,961 4.6 % Cost of goods sold ( 894 ) ( 874 ) Gross profit 2,203 2,087 5.5 % Gross profit margin 7 1.1 % 70 . 5 % Selling, general and admin ( 1,487 ) ( 1,421 ) 4.7% Research and development ( 150 ) ( 143 ) 5.0 % Trading profit 566 523 8.1 % Trading profit margin 1 8.3 % 1 7.7 % H1 trading income statement Q2 2026
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12 H 1 2 02 6 $m H 1 2 02 5 $m Reported growth IFRS operating profit 448 429 4.3% IFRS operating profit margin 14.5% 14.5% Adjusted earnings per share (“EPSA”) 47.7 ¢ 42.9 ¢ 11.0% Earnings per share (“EPS”) 35.6 ¢ 33.5 ¢ 6.2% Dividend per share 15.6 ¢ 15.0 ¢ 4 . 0 % H1 operating profit and EPSA Q2 2026
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Trading profit growth in H1 despite headwinds Q2 2026 13 523 (56) (33) (38) (18) (7) 6 5 59 128 570 (4) 566 H125 Cost inflation Investments in growth Inventory Reval AWM Reimbursement ENT VBP FX Tariffs Operating leverage Efficiency savings H126 excl M&A M&A H126 $m
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Delivering savings well ahead of expectations 14 Annual savings ($m) Cumulative run - rate savings 12 - PP/ZBB ($m) 2023 2024 2025 2026E 12-PP/ZBB savings Other savings 95 170 200 c.200 2023 2024 2025 2026E R&D and QRA Business Support Sales & Marketing Warehouse & Distribution Manufacturing & Procurement 40 155 280 c.350 Q2 2026 2026 savings ($m) *ZBB – Zero Based Budgeting Manufacturing & Procurement Warehouse & Distribution Sales & Marketing Business Support R&D and QARA c.200m
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FY26 trading profit growth unchanged 15 Trading profit 2025 Cost Inflation Investments in growth Inventory Reval AWM US Reimbursement ENT VBP Tariffs FX Operating leverage Efficiency savings TP* 2026E ex M&A M&A Trading profit 2026E $1.2b Q2 2026 c.$1.3b *TP – trading profit c.+8%
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H1 trading margin by business unit 16 H1 2026 trading margin expansion in both Sports Medicine & ENT and Orthopaedics Advanced Wound Management trading margin impacted by reimbursement headwind Business unit margins reflect full allocation of attributable costs Remaining unallocated corporate costs of $34m (H1 2025: $28m) 10.4% 12.7% 13.0% H1 2024 H1 2025 H1 2026 24.4% 23.1% 24.7% H1 2024 H1 2025 H1 2026 20.5% 22.1% 22.0% H1 2024 H1 2025 H1 2026 Orthopaedics Sports Medicine & ENT Advanced Wound Management Q2 2026
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Inventory health improved and reduction in DSI by BU Q2 2026 17 Group (DSI) Sports Medicine & ENT (DSI) Orthopaedics (DSI) Advanced Wound Management (DSI) 276 251 237 234 H1 2023 H1 2024 H1 2025 H1 2026 DSI numbers are shown on a constant currency basis *ex cludes reclassification of instrument sets from Inventory to PPE 549 543 505 433 H1 2023 H1 2024 H1 2025 H1 2026 465* 849 816 819 687 H1 2023 H1 2024 H1 2025 H1 2026 757* 402 421 305 264 H1 2023 H1 2024 H1 2025 H1 2026 272* 237*
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H1 2026 $m H1 202 5 $m $m delta Trading profit 566 523 43 Share based payment 34 21 13 Depreciation and amortisation 220 212 8 Lease liability repayments ( 29 ) ( 25 ) (4) Capital expenditure ( 190 ) ( 139 ) (51) Movements in working capital and other (164) ( 105 ) (59) Trading cash flow 437 487 (50) Trading cash conversion 77 % 93 % Restructuring, acquisition, legal and other ( 51 ) ( 71 ) 20 Net interest paid ( 55 ) ( 61 ) 6 Taxation paid (1 00 ) (1 11 ) 11 Free cash flow 231 244 (13) H1 cash flow and cash conversion Trading and free cash flow primarily impacted by increase in capex and other working capital 18 25 404 154 110 284 487 437 14% 88% 35% 26% 60% 93% 77% -10% 10% 30% 50% 70% 90% 110% 0 100 200 300 400 500 600 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 H1 2025 H1 2026 Trading cash flow ($m) Trading cash conversion Q2 2026
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Net debt bridge FY 2025 to H1 2026 Strong Balance Sheet Q2 2026 19 Leverage ratio: 1.7x 1.8 x $m Net debt includes lease liabilities Leverage ratio at 27 June 2026 is based on 12 month rolling adjusted EBITDA 2,759 (421) 190 221 205 116 (51) 3,019 Net debt at 31 Dec 2025 Free cash flow Pre Capex Capex Acquisitions Dividends Share buyback Other Net debt at 27 Jun 26
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More robust and resilient business, despite slower than expected revenue growth Q2 2026 20 Trading profit margin Cumulative 12 - PP/ZBB run - rate cost savings ($m) Free cash flow ($m) Day sales inventory (DSI) DSI numbers are shown on a constant currency basis *excludes reclassification of instrument sets from Inventory to PPE 15.3% 16.7% 17.7% 18.3% H1 2023 H1 2024 H1 2025 H1 2026 40 155 280 2023 2024 2025 2026e - 82 39 244 231 H1 2023 H1 2024 H1 2025 H1 2026 c.350 549 543 505 433 H1 2023 H1 2024 H1 2025 H1 2026 465*
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Updated 2026 guidance 21 >10% ROIC* c.4% revenue growth* Q2 2026 c.8% t rading profit growth* Revenue growth given on an underlying basis and trading profit growth on a reported basis *Excluding M&A c.$800m FCF c.$1.3b trading profit incl marginal Integrity dilution
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H1 2026 H2 2026e Drivers of H2 revenue step - up 22 5.0 - 5.5% • Sports Medicine & ENT: • Continued momentum across segments, including strong growth in REGENETEN and FASTSEAL • Advanced Wound Management : • Stabilisation of US skin substitutes • Return to growth in SANTYL • Expansion of product launches such as ALLEVYN COMPLETE CARE and LEAF 3.0 • Investment in PICO • Orthopaedics : • Improving trajectory in US Knees driven by LEGION MS • Launch of LANDMARK • Return to US Hips growth due to increased CATALYSTEM set deployment • An extra trading day in Q4 2.3%
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RISE Strategy 23 Q2 2026
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24 Q1 2026 Reach more patients RISE Strategy: H126 Innovate to enhance standard of care S Scale through strategic investment E Execute efficiently • First knee and shoulder cases completed on CORI XT • Japan launch of CATALYSTEM hip • European launch of ALLEVYN COMPLETE CARE and RENASYS ◊ EDGE • TESSA received FDA approval this quarter • Multiple new product launches including FLOW FLEXTEND ◊ , EVOS Pelvic and LYNX ◊ • Further clinical evidence 1 supporting adoption of REGENETEN and CARTIHEAL AGILI - C • Acquisition of Integrity Orthopaedics, creating one of the broadest, most advanced portfolios in shoulder • Investments in PICO salesforce • Continued progress on cost control and productivity gains, including through Ortho360 • Suzhou manufacturing site awarded the Shingo Prize, one of the world’s most respected recognitions for organisational excellence I Q2 2026 1. Strony, et al. JSES International 2026; Wang A, et al. Orthop J Sports Med. 2026;14(3):23259671261418675; Altschuler N ZK, Di Matteo B, et al. Five - Year Follow - up of a Multicenter Randomized Controlled Trial Comparing an Aragonite - Based Scaffold with Microfracture and Debridement for Chondral and Osteochon dral Knee Lesions. Am J Sports Med 2026. R 24
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25 CORI◊ and JOURNEY◊ II TULA◊ Sports Medicine AWM Orthopaedics REGENETEN Drive increased market penetration TENDON SEAM ◊ Integration progressing well CARTIHEAL AGILI - C Adoption in US accelerating ahead of Cat 1 code in 2027 TESSA FDA approval in July; limited launch in Q326 ALLEVYN COMPLETE CARE US launch progressing strongly; Positive feedback from early users; Launched in EU in Q2 LEAF PATIENT MONITORING SYSTEM Recently launched next gen LEAF 3.0 PICO Expand into new care settings and patient populations CORI XT KNEE/SHOULDER/HIP First CORI XT Cases on shoulders and knees in H1 ; Hip execution in H1 2027 CATALYSTEM Increasing proportion of our hips LANDMARK Cementless launch in Q3 2026; Cemented in H1 2027 LEGION MS Increased set deployment driving US knee improvement Incremental and transformative innovation pipeline with strong cadence
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Key messages 26 Q2 2026 Underlying revenue growth in Q2 slower than expected, with strength in Sports Medicine offset by softness in US Orthopaedics and Advanced Wound Bioactives Revenue growth outlook reduced to around 4.0% for FY 2026; on track to meet full year guidance on all other metrics We are confident revenue growth will step - up in H2 with growth drivers across all 3 business units A more resilient business effectively responding to challenges Additional $50m in savings identified, taking total to $200m for the full year, with increased savings expected to offset impact of lower revenue growth
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Q2 2026 28 Appendix
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Technical guidance for FY 202 6 29 August 2026 Foreign exchange and acquisitions Translational FX impact on revenue growth (1) c. 1 .2% Acquisition impact on revenue growth - Non - trading items Restructuring costs c.$ 70m Acquisition and integration $ 40 - 50 m Other Adjusted Reported Amortisation of acquisition intangibles $165 - 1 7 5m $165 - 1 7 5m Income/(loss) from associates (2) $15 - 20m $ 5 - 10 m Net interest (3) c. $1 2 5m c. $1 2 5m Other finance costs $ 10 - 1 5 m $35 - 45m Tax rate on trading result 19 - 20% Dividend payout ratio 35 - 40% (1) Based on the foreign exchange rates prevailing on 31 July 202 6 (2) Based on analyst consensus forecasts for associate, sourced from Capital IQ on 21 July 2026 and considering management guidan ce issued on 06 May 2026 (3) Includes interest associated with IFRS 16 Leases
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Revenue analysis by Business Unit 202 5 202 6 Q1 Growth % Q2 Growth % Q3 Growth % Q4 Growth % Full Year Growth % Q1 Growth % Q 2 Growth % Q2 Revenue $m Orthopaedics 3.2 5.0 4.1 7.9 5.1 0.8 ( 1.0 ) 614 Knee Implants 0.7 2.9 1.5 6.1 2.9 (2.8) (4.3) 247 Hip Implants (1.2) 3.4 3.7 5.7 2.9 4.1 0.5 165 Other Reconstruction 46.6 39.8 9.7 40.8 33.8 6.0 0.8 36 Trauma & Extremities 6.3 4.4 7.5 6.9 6.3 2.4 2.4 166 Sports Medicine & ENT 2.4 5.7 5.1 7.3 5.2 6.7 8.6 527 Sports Medicine Joint Repair 2.9 8.4 8.6 10.9 7.8 10.0 10.6 293 Arthroscopic Enabling Technologies (0.1) 2.3 0.2 3.4 1.6 6.7 8.8 178 ENT 7.8 3.6 4.3 2.3 4.4 (9.4) (1.6) 56 Advanced Wound Management 3.8 10.2 6.0 2.8 5.6 2.2 (2.1) 456 Advanced Wound Care 2.5 2.6 1.1 4.4 2.6 4.9 3.7 204 Advanced Wound Bioactives (2.0) 18.6 12.2 (0.5) 6.8 (1.7) (12.7) 144 Advanced Wound Devices 15.7 12.7 6.7 5.4 9.8 1.9 3.8 108 Total 3.1 6.7 5.0 6.2 5.3 3.1 1.6 1,597 30All revenue growth rates are on an underlying basis and without adjustment for number of selling days.
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Quarterly revenue analysis by region 31 2025 202 6 Q1 Growth % Q2 Growth % Q3 Growth % Q4 Growth % FY Growth % Q1 Growth % Q 2 Growth % Q 2 Revenue $m US 3.6 8.7 5.5 5.6 5.9 2.1 (1.3) 816 Other Established Markets (1) 5.0 7.4 3.9 7.2 5.9 1.0 1.7 489 Established Markets 4 . 1 8.2 4.9 6.2 5.9 1.7 (0.2) 1,305 Emerging Markets (1 . 7) (0.2) 5.4 6.4 2.5 10.5 10.6 292 Total 3 . 1 6.7 5.0 6.2 5.3 3 . 1 1.6 1,597 (1) Other Established Markets are Australia, Canada, Europe, Japan and New Zealand. All revenue growth rates are on an underlying basis and without adjustment for number of selling days
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Q 2 consolidated revenue analysis by Business Unit 32 Q 2 202 6 Q 2 202 5 Reported growth Underlying growth Acquisitions/dis posals Currency impact $m $m % % % % Orthopaedics 614 615 (0.2) (1.0 ) - 0.8 Knee Implants 247 257 (3.8) (4.3) - 0.5 Hip Implants 165 162 1.4 0.5 - 0.9 Other Reconstruction 36 35 2.0 0.8 - 1.2 Trauma & Extremities 166 161 3.5 2.4 - 1.1 Sports Medicine & ENT 527 479 10.0 8.6 - 1.4 Sports Medicine Joint Repair 293 262 11.8 10.6 - 1.2 Arthroscopic Enabling Technologies 178 161 10.6 8.8 - 1.8 ENT 56 56 (0.3) (1.6) - 1.3 Advanced Wound Management 456 459 (0.7) (2.1) - 1.4 Advanced Wound Care 204 192 6.1 3.7 - 2.4 Advanced Wound Bioactives 144 165 (12.5) (12.7) - 0.2 Advanced Wound Devices 108 102 5.5 3.8 - 1.7 Total 1,597 1,553 2.8 1.6 - 1.2
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H1 consolidated revenue analysis by Business Unit 33 H1 202 6 H1 202 5 Reported growth Underlying growth Acquisitions/dis posals Currency impact $m $m % % % % Orthopaedics 1,213 1,193 1.7 (0.1) - 1.8 Knee Implants 492 501 (1.8) (3.6) - 1.8 Hip Implants 326 313 4.3 2.3 - 2.0 Other Reconstruction 68 64 5.3 3.1 - 2.2 Trauma & Extremities 327 315 4.0 2.4 - 1.6 Sports Medicine & ENT 1,017 923 10.2 7.7 - 2.5 Sports Medicine Joint Repair 574 509 12.8 10.3 - 2.5 Arthroscopic Enabling Technologies 340 307 10.7 7.8 - 2.9 ENT 103 107 (3.6) (5.4) - 1.8 Advanced Wound Management 867 845 2.6 (0.1) - 2.7 Advanced Wound Care 398 366 8.8 4.3 - 4 .5 Advanced Wound Bioactives 263 285 (7.7) (8.1) - 0.4 Advanced Wound Devices 206 194 6.2 2.8 - 3.4 Total 3,097 2,961 4.6 2.3 - 2.3
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34 H1 EPSA H 1 2 02 6 $m H 1 2 02 5 $m Reported growth Trading profit 566 523 8.1% Net interest payable ( 55 ) ( 54 ) Other finance costs (9) (1) Share of results from associates 5 1 Adjusted profit before tax 507 469 8 . 2% Taxation on trading result ( 103 ) ( 93 ) Adjusted attributable profit 404 376 7 . 7% Weighted average number of shares (m) 8 49 874 Adjusted earnings per share ("EPSA") 47 . 7 ¢ 42.9 ¢ 11 . 0 %
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35 Trading days per quarter Q1 Q2 Q3 Q4 Full year 202 4 63 64 63 62 252 2025 62 63 63 63 251 202 6 6 1 63 63 6 4 251 202 7 6 4 64 63 6 0 25 1